Trillion assets but less than 1 million / day: Discipline in spending

The cult singer has a very strict spending principle.

Thanks to hits like Shape of You, Bad Habits, Castle on the Hill, and Perfect, Grammy-winning singer-songwriter Ed Sheeran has an estimated net worth of $200 million, according to CelebrityNetWorth.com. But despite living a financially comfortable life, Ed Sheeran is incredibly frugal.

Ed Sheeran. Ảnh: Ian West / The Associated Press

Say no to brands, shop for discounts

1. Pocket money with $ 1,000 per month

With assets in the trillions, it can be classified as super-rich, but Ed Sheeran has controlled his spending very strictly with a monthly pocket budget of $ 1,000 (about VND 25 million). Ed Sheeran was known as a homeless artist who rose to wealthy international stardom. Perhaps his previous life helped him understand the importance of saving.

2. Say no to brands

Many super-rich celebrities like to spend their cash on luxury cars and designer clothes. But it wasn’t Ed Sheeran.

Instead of buying a fleet of luxury cars, Ed Sheeran decided to buy only a single car Aston Martin DB9 for nearly 7 billion VND at the moment. In terms of clothes, it can be seen that the singer often wears casual, casual outfits. “I don’t really spend a lot of money,” Sheeran said in 2014.

Ảnh: @teddysphotos / Instagram

3. Shop for discounts

Ed Sheeran told the Irish Examiner: “I watched one on Amazon, they were handing out free DVDs. I bought 200 films.” When asked why a wealthy celebrity like himself cares about discounted DVDs, the singer simply said, “You never want to waste money.”

4. Invest money in real estate

Over the years, Ed Sheeran has amassed a huge real estate portfolio. He owns 27 properties in prime locations, worth a total of about 86 million USD (more than 2 trillion VND). Among the properties that Ed Sheeran owns are many houses in London worth between £1.72 million and £31 million (£50-893 billion). The singer also owns a bar in the trendy Notting Hill district.

All properties were bought out, so Ed Sheeran saved money by not having to take out a mortgage, and his net worth benefited from rising property values. Moreover, he rents out properties, earning extra money as a landlord. For example, the average rent in London’s posh Holland Park neighborhood, where he owns a mansion, is £909 (£26 million) per week.

Ed Sheeran at one of his houses in Suffolk. Photo: @teddysphotos/Instagram

Tricks to save every penny, set a reasonable spending limit

Many financial experts say that setting a spending limit is a smart way to save more. Certified financial planner Marguerita Cheng encourages people to set themselves 1 monthly allowance as it can help them manage their money effectively. And it allows you to spend comfortably in 1 safe range.

Cheng said: “An allowance basically allows you to choose how to allocate your monthly cash flow. People often have shopping priorities and can often feel overwhelmed or stressed in their personal finances. An allowance gives each person and couple the opportunity to know they can enjoy today while still planning for tomorrow.”

A fixed budget can be especially useful for people who want to control what they’re spending with flexibility. Financial planner Danielle Miura of Spark Financials said: “Those who feel their spending is out of control can use this budgeting method to think about their spending in the short term instead of the long term.”

Ed Sheeran. Ảnh: GETTY IMAGES

For the implementation of a pocket strategy, Miura recommends using a prepaid card and loading it every week. “Once you reach your weekly limit, you can’t spend any money for the rest of the week,” Miura said.

To figure out how much you’re spending, experts recommend adding up all your bills, savings contributions, investments, and other essential living expenses and determining how much money you can use for discretionary items and experiences.

Having a spending limit will help you stay away from the story of spending inflation when income and property values increase. For example, Ed Sheeran, despite having a desirable fortune, according to his 2019 financial report earns 75,000 pounds / day (more than 2 billion), the singer still maintains his extremely minimalist standard of living.

Theo TheThings, MarketWatch